UKRAINE TO CREATE FAVORABLE CONDITIONS FOR BUSINESS FOR ENABLING RECOVERY OF DONETSK AND LUGANSK OBLAST GCAS
For the purpose of recovery of the Government-controlled territories of Donetsk and Lugansk oblasts, affected by the armed aggression of the Russian Federation, and of creation of convenient conditions for Ukrainian citizens residing there, Ukraine needs to work out favorable conditions for business development on these territories and the terms for attraction of international investments.
Andriy Miroshnychenko, advisor to Vice Prime Minister – Minister for Reintegration of Temporarily Occupied Territories of Ukraine Oleksii Reznikov, stated about that during the panel discussion of the “Dialogue on Peace and Safe Reintegration” National Platform.
According to the Vienna Institute for International Economic Studies, recovery of the infrastructure of these territories would require approximately 21 billion USD, which Ukraine may receive due to involvement of investments through creation of convenient and favorable conditions for business development.
According to Andrii Miroshnychenko, the concept of economic development of Donetsk and Lugansk oblasts, worked out by Ministry for Reintegration and being the basis for the Strategy of Economic Development, envisages maintaining a clear operating chain: Ukraine creates conditions for business development, and business, as the result of its activity, pays taxes to feed the local budgets, the PIT, a part of the corporate income tax. Thus, the budgets will be formed for communities, which have to fully undertake creation of convenient living conditions for people on the territory of Donetsk and Lugansk oblasts.
“It is clear that people are in the center of everything, and before commencing this work, we have studied the experience of tens of international revitalization projects. All successful projects have always got the same picture: fundamental local support, development of the scientific part based on local research centers. The state has to undertake three main functions: working out new framework; undertake responsibility for the infrastructural base and for the ecology. It is these components we built up the concept Strategy of Economic Development of Donetsk and Lugansk Oblasts from,” Miroshnychenko stated.
At the same time, he stressed that the Strategy is being worked out based on the concept and in accordance with all international arrangements reached with regard to tax settlement for business and prevention of tax gaps emergence in the legislation.
“When we talk about the territories of Lugansk and Donetsk oblasts, we do not mean the so-called “free economic zone”, direct tax privileges, or an attempt to simply reduce the tax pressure. We have to understand that the tax pressure is generally not the only and not the primary problem of business, while it is far more important how such taxes are administered. Therefore, in is vital for us to clearly state that this strategy is being developed as per all international arrangements,” Miroshnychenko added.